NorthStar Gaming Reports Third Quarter 2024 Results
NorthStar Gaming Holdings reported strong Q3 2024 financial results with significant growth across key metrics. Total wagers increased 69% to $234 million, while gross gaming revenue rose 53% to $8.4 million. Revenue grew 45% to $6.8 million, and gross margin increased 63% to $2.7 million. The company achieved a notable milestone as gross margin now fully covers overhead costs. Marketing expenditures as a percentage of revenue decreased from two-thirds to approximately half year-to-date, demonstrating improved operational efficiency.
For the nine-month period, total wagers reached $677 million, up 54%, with gross gaming revenue increasing 56% to $24.1 million. The company outpaced industry growth rates in both total wagers and gross gaming revenue.
NorthStar Gaming Holdings ha riportato risultati finanziari forti per il terzo trimestre del 2024, con una crescita significativa in metriche chiave. Le scommesse totali sono aumentate del 69% arrivando a 234 milioni di dollari, mentre le entrate lorde da gioco sono cresciute del 53%, raggiungendo 8,4 milioni di dollari. Le entrate sono aumentate del 45% fino a 6,8 milioni di dollari, e il margine lordo è salito del 63% a 2,7 milioni di dollari. L'azienda ha raggiunto un traguardo notevole poiché il margine lordo copre ora interamente i costi generali. Le spese di marketing, in percentuale rispetto alle entrate, sono diminuite da due terzi a circa la metà nei primi nove mesi dell'anno, dimostrando un miglioramento dell'efficienza operativa.
Nel periodo di nove mesi, le scommesse totali hanno raggiunto 677 milioni di dollari, con un incremento del 54%, mentre le entrate lorde da gioco sono aumentate del 56%, arrivando a 24,1 milioni di dollari. L'azienda ha superato i tassi di crescita dell'industria sia per le scommesse totali che per le entrate lorde da gioco.
NorthStar Gaming Holdings reportó resultados financieros fuertes para el tercer trimestre de 2024, con un crecimiento significativo en métricas clave. Las apuestas totales aumentaron un 69% alcanzando 234 millones de dólares, mientras que los ingresos brutos de juego crecieron un 53% hasta 8,4 millones de dólares. Los ingresos aumentaron un 45% hasta 6,8 millones de dólares, y el margen bruto se incrementó un 63% a 2,7 millones de dólares. La empresa alcanzó un hito notable ya que el margen bruto ahora cubre completamente los costos indirectos. Los gastos de marketing como porcentaje de los ingresos disminuyeron de dos tercios a aproximadamente la mitad en lo que va del año, lo que demuestra una mejora en la eficiencia operativa.
Durante el período de nueve meses, las apuestas totales alcanzaron los 677 millones de dólares, un aumento del 54%, con los ingresos brutos de juego aumentando un 56% hasta 24,1 millones de dólares. La empresa superó las tasas de crecimiento de la industria tanto en las apuestas totales como en los ingresos brutos de juego.
NorthStar Gaming Holdings는 2024년 3분기 강력한 재무 결과를 보고하며 주요 지표에서 상당한 성장을 보였습니다. 총 베팅 금액은 69% 증가하여 2억 3천4백만 달러에 이르렀고, 총 게임 수익은 53% 증가하여 840만 달러에 도달했습니다. 수익은 45% 증가하여 680만 달러에 달했으며, 총 마진은 63% 증가하여 270만 달러에 이릅니다. 회사는 총 마진이 이제 간접비를 완전히 충당하는 주목할 만한 이정표를 달성했습니다. 매출 기준으로 마케팅 지출 비율은 2/3에서 약 절반으로 줄어들어 운영 효율성이 향상되었습니다.
9개월 기간 동안 총 베팅 금액은 6억 7천7백만 달러에 이르렀고, 이는 54% 증가한 수치이며, 총 게임 수익은 56% 증가하여 2410만 달러에 도달했습니다. 회사는 총 베팅 금액과 총 게임 수익 모두에서 산업 성장률을 초과했습니다.
NorthStar Gaming Holdings a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec une croissance significative dans des indicateurs clés. Les mises totales ont augmenté de 69% pour atteindre 234 millions de dollars, tandis que les revenus bruts des jeux ont grimpé de 53% à 8,4 millions de dollars. Les revenus ont crû de 45% pour atteindre 6,8 millions de dollars, et la marge brute a augmenté de 63% atteignant 2,7 millions de dollars. L'entreprise a atteint une étape notable, car la marge brute couvre désormais entièrement les coûts indirects. Les dépenses marketing en pourcentage des revenus ont diminué, passant de deux tiers à environ la moitié depuis le début de l'année, montrant ainsi une amélioration de l'efficacité opérationnelle.
Sur la période de neuf mois, les mises totales ont atteint 677 millions de dollars, en hausse de 54%, avec des revenus bruts de jeux augmentant de 56% à 24,1 millions de dollars. L'entreprise a dépassé les taux de croissance de l'industrie tant en mises totales qu'en revenus bruts de jeux.
NorthStar Gaming Holdings berichtete über starke Finanzresultate im dritten Quartal 2024, mit signifikantem Wachstum in wichtigen Kennzahlen. Die Gesamteinsätze stiegen um 69% auf 234 Millionen Dollar, während die Brutto-Spielerträge um 53% auf 8,4 Millionen Dollar anstiegen. Der Umsatz wuchs um 45% auf 6,8 Millionen Dollar, und die Bruttomarge erhöhte sich um 63% auf 2,7 Millionen Dollar. Das Unternehmen erreichte einen bemerkenswerten Meilenstein, da die Bruttomarge nun die Gemeinkosten vollständig deckt. Der Anteil der Marketingausgaben am Umsatz sank im bisherigen Jahresverlauf von zwei Dritteln auf etwa die Hälfte, was auf eine verbesserte operative Effizienz hinweist.
Im Neunmonatszeitraum erreichten die Gesamteinsätze 677 Millionen Dollar, ein Anstieg von 54%, während die Brutto-Spielerträge um 56% auf 24,1 Millionen Dollar stiegen. Das Unternehmen übertraf die Wachstumsraten der Branche sowohl in den Gesamteinsätzen als auch in den Brutto-Spielerträgen.
- Total wagers increased 69% YoY to $234 million in Q3 2024
- Gross gaming revenue grew 53% to $8.4 million
- Revenue increased 45% to $6.8 million
- Gross margin rose 63% to $2.7 million with margin percentage improving 400bps to 39%
- Achieved profitability before marketing expenses of $0.1 million vs $(0.5) million loss in Q3 2023
- Marketing costs reduced from 66% to approximately 50% of revenue
- Company needs to secure additional funding to support growth strategy
Significant growth in wagers, revenue and gross margin
Toronto, Ontario--(Newsfile Corp. - November 27, 2024) - NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three- and nine-month periods ended September 30, 2024. All dollar figures are quoted in Canadian dollars.
"We delivered exceptional year-over-year growth across all key metrics in the third quarter, including a
Financial Highlights for the Third Quarter Ended September 30, 2024 ("Q3 2024"):
- Total Wagers[1] at Northstarbets.ca were
$234 million , a69% increase compared to$138 million in Q3 2023. - Gross Gaming Revenue[1] at NorthStarbets.ca was
$8.4 million , a53% increase from$5.5 million in Q3 2023. - Revenue[2] was
$6.8 million in Q3 2024, a45% increase from$4.7 million in Q3 2023. - Gross Margin was
$2.7 million , representing a63% increase from$1.6 million in Q3 2023, while the Gross Margin percentage increased by 400 basis points to39% , from35% in Q3 2023. - Profit/(loss) before marketing and other expenses[1] was
$0.1 million in Q3 2024 compared to$(0.5) million in Q3 2023, as gross margin is now sufficient to cover the Company's overhead expenses.
Financial Highlights for the Nine-Month Period Ended September 30, 2024 ("YTD 2024"):
- Total Wagers[1] at Northstarbets.ca reached
$677 million , a54% increase compared to$438 million in the nine months ended September 30, 2023 ("YTD 2023"). - Gross Gaming Revenue[1] at NorthStarbets.ca was
$24.1 million , a56% increase from$15.4 million in YTD 2023. - Revenue[2] totaled
$20.2 million , a55% increase from$13.0 million in YTD 2023. - Gross Margin was
$8.0 million , marking a72% increase from$4.7 million in YTD 2023, with the Gross Margin percentage increasing to40% , up from36% in the comparable period of 2023. - Profit/(loss) before marketing and other expenses1 was
$0.6 million in YTD 2024 compared to$(3.0) million in YTD 2023, as gross margin is now sufficient to cover the Company's overhead expenses.
Recent Operating Highlights:
- The Company continued to outpace the industry growth rates reported by iGaming Ontario in Q3 2024 in both Total Wagers (
54% for NorthStar vs.32% for the industry) and Gross Gaming Revenue (67% for NorthStar vs.37% for the industry).[3] - NorthStar recently completed its inaugural Blackjack Championship tournament, an innovative online competition with a total prize pool of
$100,000. - In October, the Company announced the launch across all platforms of "Sports Insights 2.0," a robust suite of enhancements that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
- The Company also announced a series of enhancements to its online betting platform in September, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
Outlook
"The marketing investments and product launches we executed in Q3 have set us up for a strong finish to the year, as the fourth quarter is typically a seasonally robust period," said Mr. Moskowitz. "With the continued momentum in our business and operating leverage driving improved financial results, we are highly optimistic about our ability to deliver significant shareholder value in 2025."
Management is working diligently to secure additional funding and remains confident that the Company will be able to access the capital necessary to continue to support its growth strategy. The Company expects to provide an update in the coming weeks.
Q3 Corporate Update Webinar
On December 3, 2024, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's Q3 Earnings, current operations and upcoming milestones. All investors and other interested parties are invited to register for the webinar at the link below.
Date: Tuesday, December 3rd, 2024
Time: 11am ET
Register: Webinar Registration
Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.
Extension of Strategic Marketing Agreement
The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has agreed to extend its partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and renewed earlier this year, with Playtech Software contributing services valued at a total of
Additional Information
For additional information, please refer to Company's condensed consolidated interim financial statements for the three- and nine-month periods ended September 30, 2024, and the corresponding management's discussion and analysis ("MD&A"). These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.
About NorthStar
NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.
As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Non-IFRS Financial Measures
Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.
Total Wagers
Total Wagers is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.
Gross Gaming Revenue
Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.
Reconciliation of Non-IFRS Measures to IFRS Measures
In Q3 2024, the Company reported
| $ Millions (unaudited) | Three months ended | Nine months ended | ||
| Sept 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | |
| Gross gaming revenue from wagered games | 8.4 | 5.5 | 24.1 | 15.4 |
| Bonuses, promotional costs and free bets | 1.9 | 0.9 | 4.7 | 2.7 |
| Sub-total Gaming revenue | 6.5 | 4.6 | 19.4 | 12.7 |
| Other revenue from managed services | 0.3 | 0.1 | 0.8 | 0.3 |
| Revenue | 6.8 | 4.7 | 20.2 | 13.0 |
Operating Results
Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.
| $ Millions (unaudited) | Three months ended | Nine months ended | ||
| Sept 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | |
| Revenue | 6.8 | 4.7 | 20.2 | 13.0 |
| Cost of Revenues | ||||
| Gross Margin | 2.7 | 1.6 | 8.0 | 4.7 |
| General and administrative expenses | 2.7 | 2.2 | 7.4 | 7.6 |
| Profit/(Loss) before marketing and other expenses (1) | (0.1) | (0.5) | 0.6 | (3.0) |
| Marketing | 2.8 | 2.0 | 10.2 | 8.6 |
| Loss before other expenses (1) | (2.9) | (2.5) | (9.6) | (11.6) |
| Other expenses | 0.3 | 1.7 | 4.7 | 6.4 |
| Net loss | (3.2) | (4.2) | (14.3) | (18.0) |
(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.
Cautionary Note Regarding Forward-Looking Information and Statements
This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, expansion into new markets and future growth opportunities and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward- looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward- looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
For further information:
Company Contact:
Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca
Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com
[1] Represents a Non-IFRS financial measure. See "Non-IFRS Financial Measures" below for more information.
[2] Revenue includes managed services fees, and Gross Gaming Revenue net of bonuses, promotional costs and free bets.
[3] iGaming Ontario's FY 2024-25 Q2 Market Performance Report, October 24, 2024.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231456
FAQ
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